11/09/2013 (The Star) - CIMB Equities Research continues to rate the plantation sector a Neutral as it feels that the market has already priced in some recovery in crude palm oil (CPO) prices.

“We remain selective in our top picks and have added Astra Agro to our top pick list comprising First Resources, Wilmar and IOI Corporation,” it said on Wednesday.

CIMB Research said it liked First Resources for its well-managed estates and attractive valuations.

Wilmar remains one of its top picks as it expects the group's earnings to benefit from higher palm oil sales volumes and improved crushing margins.

“We also like IOI Corp in Malaysia as we think that investors have not fully priced in the potential of its property business, which will be demerged and listed in 4Q13,” it said.

CIMB Research added Astra Agro is its top pick among the Indonesian-listed planters that are set to benefit from the weaker rupiah through better domestic CPO prices.

It said Malaysia’s palm oil stocks were flat on-month at 1.67 million tonnes as at end-Aug 13.

This was 4% below its and consensus projections due mainly to higher exports to China and EU, which helped to counter the steady on-month rise in production.